Many people who run an IT and computer service would do anything to make their business the best possible and to provide their clients with great service. Whenever you run a business that offers a service to the public and that may also involve employing staff, then you need the right kind of insurance to cover you for all eventualities. IT consultants offer a service to the public that carries with it its own potential hazards, even if you have done your job properly, there will always be the type of client who believes that whatever goes wrong with their system is someone else's fault.
If you need to close your business for a while, then you will need an insurance policy that will help to compensate you for loss of income until you are able to open up again and provide your clients with IT services. When you have a business that is large enough that you need to employ people, then there is the potential that an unhappy member of staff or ex employee will take you to court with a grievance. You need a proper level of insurance just in case a court or tribunal finds in favour of the employee and you have to pay them a significant amount of money in compensation.
Running any business can be a dream but you do need to be aware of the problems that you face as well, particularly when you are offering a service. If you set up someone's computers at their company and something goes wrong or the firewalls do not work and a competitor hacks their business, you could find yourself faced with a lawsuit because the client regards it as the result of some negligence on your part.
Whether or not you were negligent is a side issue at that point, because you are still faced with the costs of going to court, even if that court finds in your favour. When you have the right kind of insurance you are covered for these eventualities and the insurance will pay for any compensation awarded to the other party or it will pay for your defence if you are claiming that you were not negligent.
Professional indemnity insurance is designed to protect you and your business from employee tribunals and client lawsuits. Although you will not stop someone from suing you just because you have an insurance policy, you will be able to pay for any legal defence if you are charged with negligence and you will be able to pay compensation without breaking your business.
It is in your own best interests to take out professional indemnity insurance if you want to protect your business from damages and lawsuits. As with any other insurance, you should not just get yourself one quote and go with that. Do some research and try to find a policy that is designed to help you run your business and to have the wherewithal to deal with any legal consequences that might arise because of an unhappy client.